The United States and China have started to outline commitments in principle on the stickiest issues in their trade dispute, marking the most significant progress yet toward ending a 7-month trade dispute, according to sources familiar with the negotiations.
The world’s 2 largest economies have placed tit-for-tat tariffs on hundreds of billions of dollars of goods, slowing global economic growth, skewing supply chains and disrupting manufacturing.
Officials are holding high level talks Thursday and Friday in Washington to finalize demands made by President Donald Trump for structural changes to China’s economy.
The broad outline of what could make up a deal is beginning to emerge from the talks, as the 2 sides push for an agreement by 1 March.
That marks the end of a 90-day truce that Presidents Trump and Xi agreed to when they met in Argentina late last year.
Negotiators are drawing up 6 MOUs aka memorandums of understanding on structural issues: forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers to trade, according to those familiar with the progress of the talks.
At meetings between Us and Chinese officials last week in Beijing the 2 sides traded texts and worked on outlining obligations on paper.
The parties are looking at a 10-item list of ways that China could reduce its trade surplus with the United States, including by buying agricultural produce, energy and goods such as semiconductors, according to two other sources familiar with the talks.